Financial Statements and Closing Entries Outdoors, Inc. publishes magazines for skiers and hikers. The firm has the following adjusted trial balance at December 31. OUTDOORS, INC. Adjusted Trial Balance December 31 Debit Credit Cash $5,400 Accounts Receivable 18,600 Supplies 4,200 Prepaid Insurance 930 Office Equipment 70,000 Accum. Depr. - Equipment $13,000 Accounts Payable 16,100 Unearned Subscription Revenue 10,000 Salaries Payable 3,500 Common Stock 21,000 Retained Earnings 23,220 Subscription Revenue 188,300 Advertising Revenue 49,700 Salaries Expense 120,230 Printing and Mailing Expense 85,600 Rent Expense 4,800 Supplies Expense 6,100 Insurance Expense 1,860 Depreciation Expense 5,500 Income Tax Expense 1,600 Totals $324,820 $324,820 Required a. Prepare an income statement and a balance sheet as of December 31. b. Prepare closing entries directly to Retained Earnings in general journal form. Income Statement Balance Sheet Journal Entries ta 0 O 0 NOTE: Do not use negative signs with answers, unless otherwise noted (such as accumulated depreciation). OUTDOORS, INC. Income Statement For Year Ended December 31 Revenue Subscription Revenue Advertising Revenue Total Revenue Expenses Salaries Expense Printing and Mailing Expense Rent Expense 0 Supplies Expense Insurance Expense 0 Depreciation Expense Income Tax Expense 0 Total Expenses Net Income 0 0 0 0 0 $ 0 Check Income Statement Balance Sheet Journal Entries OUTDOORS, INC. Balance Sheet December 31 $ 0 $ 0 0 Liabilities Accounts Payable Unearned Subscription Revenue Salaries Payable Total Liabilities Assets Cash Accounts Receivable Supplies Prepaid Insurance Office Equipment Less: Accum. Depr. - Equipment (enter as a negative) 0 0 0 0 0 0 0 0 0 Stockholders' Equity Common Stock Retained Earnings Total Stockholders' Equity 0 Total Liabilities and Stockholders' Equity $ 0 0 Total Assets $ 0 Check General Journal Description Date Debit Credit Dec 31 0 $ 0 Advertising Revenue 0 0 0 0 To close the revenue accounts. 31 0 0 0 0 0 0 0 0 0 0 Salaries Expense Printing and Mailing Expense Rent Expense Supplies Expense Insurance Expense Depreciation Expense Income Tax Expense To close the expense accounts. 0 0 0 0 0 O Check